The effect of real earnings management, fraud, and earnings informativeness, as the moderating variable, on investment efficiency

Research aims: This study aims to analyze the relationship between real earnings management, fraud, and informativeness, as moderating variable, on investment efficiency.Design/Methodology/Approach: The samples tested consisted of 333 observations in manufacturing companies during 2018-2020. hypothesis testing used moderated regression analysis through Eviews-12.Research findings: results uncovered that management with cash flow (EM_CFO), production (EM_PROD), discretionary costs (EM_DISEXP) had a negative effect efficiency, while fraud positive effect. Besides, informativeness moderation variable only affected efficiency. Theoretical contribution/Originality: EM_CFO, EM_PROD, EM_DISEXP transition approach from accrual management. In previous studies, was not directly examined Adding thus gives another perspective independent dependent variables.Practitioner/Policy implication: implication for practitioner is provide consideration From policy’s view, this can give an overview Financial Services Authority (“OJK”) Investment Coordinating Board (“BKPM”) consider know important elements financial statements encourage efficiency.Research limitation/Implication: limitation coverage industry. Exploring other sectors, extending period, deepening open better research, including using proxies each variable. additional literature but also shareholders investment’s decision-making.